Mutual Funds Commodities Research Tax Planning IPO Our Team Contact Us    
IPO News

| More

Bandhan Bank Ltd - IPO NOTE - Arihant Capital Markets

Posted On: 2018-03-12 21:04:25

Company & Business Profile:

Bandhan Bank Ltd, a commercial bank was incorporated on 23rd December, 2014. It began operations on 23rd August 2015 when parent Company Bandhan Financial Services Limited (BFSL) transferred its entire MFI business to them and Bandhan simultaneously commenced general banking activities.

In 2001, Bandhan Konnagar was formed as a NGO providing microfinance services to socially and economically disadvantaged women in rural West Bengal.

BFSL started its microfinance business in 2006 and the NGO transferred its microfinance business to BFSL in 2009 and thereby the entire microfinance business was undertaken by BFSL. When BFSL transferred its microfinance business to Bandhan Bank, it was India's largest microfinance company in terms of loan portfolio and number of customers.

Bandhan Bank is focused on serving underbanked and underpenetrated markets in India across customer segments. Bank's strength lies in microfinance, including a network of 2,633 Doorstep Service Centers ("DSCs") and 9.86 million micro loan customers as of December 31, 2017. It launched its general banking business on August 23, 2015 by opening a Greenfield network of 501 bank branches and 50 automated teller machines ("ATMs"), which as of December 31, 2017 has grown to 887 bank branches and 430 ATMs, together serving over 2.13 million general banking customers. Its distribution network is particularly strong in East and Northeast India, with West Bengal, Assam and Bihar together accounting for 56.37% and 57.58% of its branches and DSCs, respectively, with focus is to expand across India.

Bandhan Bank has built a strong base of Current Account and Savings Account deposits, which together stood at Rs.8,401.85 crore as of December 31, 2017, a CASA ratio of 33.22%. Moreover, as of December 31, 2017, its retail-to-total deposit ratio stood at 85.07%.

As of December 31, 2017, its Deposits and Gross Advances stood at Rs.25,293.96 crore and Rs.24,364.39 crore, respectively.

Promoter and Promoter Group:

The Promoters of Bandhan Bank is Bandhan Financial Holdings Limited ("BFHL"), Bandhan Financial Services Limited ("BFSL"), Financial Inclusion Trust ("FIT") and North East Financial Inclusion Trust ("NEFIT"). BFHL holds 981,483,046 Equity Shares, representing 89.62% of the issued and paid-up Equity Share capital of Bandhan Bank.

Dr. Ashok Kumar Lahiri is the Independent Director (part-time Chairman) of the Bank. He has significant experience in the banking sector. Previously, he has worked in the capacity of a Director at Asian Development Bank. He has been a director on the Board since July 10, 2015.

Chandra Shekhar Ghosh is the Managing Director and Chief Executive Officer of the Bank. He has significant experience in the finance and microfinance sector. He has been a director on the Board since July 10, 2015.

Objectives of issue:

- To augment the Bank's Tier-I capital base to meet the Bank's future capital requirements
- General Corporate Purposes


The issue has been offered at a price band of Rs 370-375 per equity share. At the upper price band of Rs 375, the stock is available at price-to-book value multiple of 4.9(x) its FY18 BVPS of 76.Considering the unique operating model, we have "4 star" rating for the issue.

Source: Equity Bulls

Click here to send ur comments or to

Other Headlines:

IRCTC shares to list on Monday - October 14, 2019

IRCTC'S IPO to open on Monday, September 30, 2019 with Price Band of Rs. 315 - Rs. 320 per share

Alpahlogic Techsys IPO oversubscribed 1.18 times on the final day of bidding

Alphalogic Techsys IPO receives overwhelming response, oversubscribed on second day of bidding

Start-up IPO Alpahlogic Techsys subscribed 64% On the First day of bidding

India's First Start-up IPO Opens today

Alphalogic Techsys IPO now to open in Aug 26th, 2019

Alphalogic Techsys Limited IPO to open on August 23, 2019

Alphalogic Techsys Limited to be the First Company to be Listed on BSE Startup Platform

Ujjivan Small Finance Bank Ltd files DRHP with SEBI for IPO

Global solar EPC major Sterling and Wilson Solar's Rs 3,125 cr IPO opens on August 6, 2019

Tamil Nadu - based Annai Infra Developers Ltd. gets SEBI approval to float IPO

Maharashtra Finance Minister Unveils DRHP of Alphalogic Techsys Limited for Rolling Out its IPO

K.P.R. Agrochem IPO withdrawn: Angel Broking

Shyam Steel Industries Limited files DRHP for IPO

White Organic Retail Ltd IPO opens on BSE SME platform

TN-based Annai Infra Developers Limited files document for IPO float

Rail Vikas Nigam Limited's IPO to open on Friday, March 29, 2019

Humming Bird Education IPO fully subscribed

Humming Bird Education IPO Opens on March 15

MSTC Limited's IPO to open on Wednesday, March 13, 2019

Anmol India Ltd IPO fully subscribed on Day 3

KPI Global Infrastructure's Rs. 40 crore mops subscription of Rs. 436 Crore

Initial Public Offer: Garden Reach Shipbuilders & Engineers - Kotak

Initial Public Offer: Dinesh Engineers Ltd - Kotak

Subscription for Kritika Wires Ltd IPO open

Garden Reach Shipbuilders & Engineers Ltd IPO extended, price band revised

IPO of Spectrum Electrical Industries Limited Opens on September 17, 2018

Ahlada Engineers IPO opens for subscription on Sep 11, 2018

Rajshree Polypack Ltd NSE SME IPO to open for subscription on Sep 10, 2018

Marquee investor, Sunil Singhania's Abakkus Growth Fund - 1 invests in Rajshree Polypack Limited as Anchor Investor

Equity shares of CreditAccess Grameen Limited to list on Aug 23, 2018

TCNS Clothing Company Ltd to list on July 30, 2018

HDFC AMC IPO receives subscription of 83.04 times

HDFC Asset Management Co - IPO Note - Angel Broking

TCNS Clothing Company Limited - IPO Note - Angel Broking

Rajnish Wellness Ltd IPO to hit markets on June 25, 2018

Varroc Engineering Limited IPO to open for subscription on June 26, 2018

RITES Limited IPO receives overwhelming response from investors

Fine Organic Industries Limited IPO receives subscription of 8.99 times

Varroc Engineering Ltd - IPO Note - Angel Broking

RITES Ltd - IPO Note - Angel Broking

Fine Organic Industries Ltd - IPO Note - Angel Broking

Avana Logistek Ltd files DRHP with SEBI for IPO

IndoStar Capital Finance Ltd - IPO Note - Angel Broking

IndoStar Capital Finance Limited Offer opens on May 9, 2018

IPO Note - SoftTech Engineers Ltd - Arihant Capital Markets Ltd

Hindustan Aeronautics Ltd to list on March 28, 2018

Expectations high on listing of Bandhan Bank shares tomorrow

Mishra Dhatu Nigam Limited IPO receives subscription of 1.21 times

Website Created & Maintained by : Chennai Scripts
West Mambalam, Chennai - 600 033,
Tamil Nadu, India

disclaimer copyright © 2005 - 2019